Lesson for NZ from Iran War is our need to be electrified and not gas or oil reliant
Global conflict has a way of exposing economic vulnerabilities, and New Zealand’s dependence on imported fuel is once again under the spotlight. As tensions escalate in the Middle East and the Strait of Hormuz becomes a strategic choke point, the question becomes unavoidable: why is New Zealand still so reliant on oil in a world moving rapidly toward electrification?
Surely the lesson for NZ from what is happening in Iran right now is that we need to be self sufficient on electricity?
New Zealand’s Growing Energy Vulnerability
At a time when the Government have dumped EV subsides and clean car subsidies, is investing in a multi-billion dollar gas scam and have avoided subsidising solar, we are faced with the perfect storm of oil price hikes.
Why the Strait of Hormuz Matters to New Zealand
Iranians are now mining the Strait of Hormuz – I think Trump has bitten off way more than he can chew – he has mistakenly believed Theocratic Religious Zealots could be as easily bullied as Corrupt Crony Revolutionary Venezuelans – this isn’t ending soon.
New Zealand’s Dangerous Reliance on Imported Fuel
The South Koreans are looking at ending refined oil exports, NZ gets 48% of our oil from them.
If they shut down exports, it will be crippling to NZ’s economy.
NZ has 20 days of petrol on shore and a further 30 days in tankers heading here – BUT – those tankers can sell to other clients before they get to NZ, so we HOPE they come here, but if the situation goes longer, that oil can be sold before it gets here and they will turn around.
Fuel Security Warnings Already Given to Government
Bernard Hickey has the report on what shutting the Strait means for NZ’s fuel…
Report advised on Hormuz risks, including forecast of hit to GDP
An Advisory-Castalia report on Fuel Security for the Government last year considered the risk of a major disruption such as an extended closure of the Strait of Hormuz and estimated a GDP hit of upwards of 1% of GDP. It estimated prices would increase by twice as much as during the Ukraine crisis.
…I think the 1% GDP destruction is optimistic.
Trump has damaged so much with this illegal war.
Climate change is happening faster than predicted and its impacts are only going to cause geopolitical stresses to occur.
Electrification Is the Only Long-Term Solution
The solution is massive electrification of the NZ system so that we are not held hostage.
That means more electric cars, more electric car subsides, more solar, more solar panel subsides, wind and turbine energy creation.
We are refusing to acknowledge the massive change coming.
When Winston Peters starts recommending Muldoonist Car-Less days, that’s when some think big transport electrification will get funded.
I agree with you Martin ,it’s a no brainer to electrify our car and public transport fleet in this current energy crisis bought on by Israel desire for never ending wars Its an oil grab attempt by both Trump and Israel .I live in New Plymouth drive a hybrid ,ride an ebike and walk to alot of places via our coastal walkway.If you are not growing your own food now is a good time to start as food in Supermarkets with go up and up .I have transformed a back shed into a hot house and have many fruit trees if the govt encouraged people to install Solar PV it would be easy for people to recharge an EV at home .We need to end our addiction to fossil fuels .
Electrification of goods vehicles and farming vehicles is never going to be practical – let alone the ships and planes we rely upon. The real answer is NOT relying on huge ships to bring refined fuel thousands of miles across oceans to us, but to nationalise oil drilling and refining locally until a transition to a full electric fleet is practical. Now, if only we already had the most efficient refinery already built if that hadn’t been sabotaged by an ideolog. You’d have thought with her experience in the fish and chip industry, she’d have known the value of oil.
You know that the oil has to be there before you drill the hole? If NZ had economic supplies of oil it would still be used.
The shareholders decided to shut Marsden Point so it’s obvious that you don’t have any experience in the real world. If the government had insisted that it stayed open you would have complained about higher fuel prices.
https://en.wikipedia.org/wiki/Marsden_Point_Oil_Refinery